Confectionery and Snacks

Sector Payment Behaviour Analysis: Confectionery and snacks

We have conducted a rigorous assessment of payment behaviour within the Confectionery and snacks sector, utilising a sample size of 26 companies to determine the prevailing financial culture. The data reveals a mean payment time of 45.5 days, which sits in close proximity to the median of 43 days. This alignment suggests that whilst outliers exist, the central tendency of the sector is relatively stable, hovering just beyond the standard 30-day commercial term. However, the standard deviation of 20.4 days is statistically significant; it indicates a lack of uniformity in how these businesses manage their accounts payable. Consequently, suppliers must realise that payment experiences will vary considerably depending on the specific partner, rather than adhering to a strict sector-wide norm.

When we organise the companies into performance bands, the distribution shows that the largest cohort falls into the 'Moderate' category (31-45 days), accounting for 38.5% of the sample. When combined with the 23.1% of companies classified as 'Fast' payers (0-30 days), it is evident that over 60% of the sector operates with a reasonable degree of fiscal responsibility. However, the data highlights a concerning "tail" of poor performance. A substantial 19.2% of companies take between 46 and 60 days to settle debts, whilst 15.4% fall into the 'Very Slow' category of 61-90 days. Most critically, one company—representing 3.8% of the dataset—averaged over 90 days, flagging a severe credit risk. Suppliers engaging with the bottom quartile of this sector should be prepared for cash flow interruptions.

A deeper analysis of the performance metrics uncovers a disparity between company averages and invoice volume. Whilst only 23.1% of companies average a payment speed of under 30 days, the performance breakdown indicates that 36.3% of actual payments are made within this window. This discrepancy suggests that some larger organisations may be processing high volumes of invoices efficiently, effectively masking the sluggish behaviour of smaller entities within the dataset. Nevertheless, with 22.4% of all payments classified as 'late' and the 75th percentile sitting at 54 days, credit controllers must remain vigilant. The range between the fastest payer (17 days) and the slowest (104 days) further emphasises the volatility amongst these businesses.

Finally, the geographic distribution of the sample shows a clear concentration in the south-eastern region of the UK. The East of England and London serve as the primary commercial centres, accounting for exactly half of the companies analysed. This regional bias may influence the payment culture, reflecting the higher operational costs or liquidity pressures associated with these hubs. In summary, whilst the median performance of 43 days is not alarming, the interquartile range of 23 days signals that a quarter of this sector is pushing terms towards two months. Suppliers are advised to favour strict credit control processes when onboarding new clients in the Confectionery and snacks sector to mitigate the risks associated with the slower-paying quartile.